(Yicai Global) March 9 -- HNA Group Co. is poised to dispose of another plot of land in Hong Kong for HKD6.3 billion (USD803 million) to raise funds after the Chinese conglomerate piled up debts in a spree of mergers and acquisitions. This is the second time it has sold land in Hong Kong this month. 

Omnilink Assets Ltd., a subsidiary of HNA-controlled Hong Kong International Construction Investment Management Group Co., signed a deal with local property developer Wheelock & Co., said a statement from the buyer. A residential project is under construction on the land, 7,318 square meters in the New Kowloon area, with a maximum floor space of 39,517 square meters.

HNA bought four plots in the Kai Tak area for a total HKD27.2 billion between November 2016 and last March, reported online news outlet The Paper. Last month, it sold two to Henderson Land Development Co. for HKD16 billion.

HNA, which has interests in aviation, real estate and financial services, is trying to raise cash to pay back loans following a USD50 billion M&A splurge over the past two years that sparked a regulatory investigation into its borrowing and ownership structure. China's financial authorities have intensified a crackdown on risky financing and capital outflow since last year, putting many Chinese companies under pressure.
 

In an interview with Reuters in January, HNA Chairman Chen Feng acknowledged that the group is struggling with a liquidity issue due to the maturity of debts incurred through M&As in recent years. Based on data from the group, its total debt now stands at about CNY250 billion (USD39.4 billion).